“Both of these factors shifted in late 2018. Mortgage rates reached above 4.9% in November, the highest level since 2011, causing some buyers to be more conservative in their bidding,” Zillow writes. “The last months of 2018 also saw the first inventory gains in three years, alleviating some of the competitive pressure on buyers.”

Notably, Zillow highlights not only did the share of homes that sold above list decline, but the average price above list dropped, too.

“Among homes sold above list, the typical amount above list has remained above $6,000 for the last several years,” Zillow writes. “As of December, the median amount had dropped to $5,860, while the median discount for homes selling below list held steady.”

Zillow suggests this narrowing means buyers and sellers are syncing up on their price expectations. In fact, across the country, the share of homes that sold above list price has been moving between 15% and 25% since 2012.

That being said, Zillow makes note that national trends don’t always directly represent separate metropolitan data. This is because homes are selling above list price at higher frequencies in some metro areas.

“So while the seller’s market appears to be waning, it’s certainly not over, and this is not a result of weak demand,” Zillow writes. “Homes are more likely to sell at the listed price as a result of convergence in the market expectations of buyers and sellers.”

The image below highlights the metros that experienced increases in homes sold above list price:

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Alcynna Lloyd is a reporter at HousingWire. Lloyd has a degree in broadcast journalism from the University of North Texas. She previously interned with a broadcast position at CBS and has a background in freelance journalism.

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Every day, people in your community are looking for a new place to call home. But in the age of the digital shift, they are now getting most of that information from their mobile devices rather than more traditional sources.